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Calastone Investment Fund Moving Entire Network to Blockchain in 2019

  • Calastone, a London-based investment funds transaction network, has announced that it is moving its entire network to blockchain in May 2019
  • Calastone serves over 1,700 forms including JP Morgan Asset Management and Schroders

It was announced this week that Calastone, a London-based investment fund will be moving its entire transaction network to Blockchain from May 2019. Calastone specializes in providing back and model office services to firms all over the world such as JP Morgan Asset Management, Schroders (SDR.L) and Invesco.

Currently, a bank needs to send three sets of messages to carry out their transactions. The first is a message to place orders, the second is to confirm receipt, and the third to confirm the price. However, this method is often seen as unnecessarily time consuming and stressful.

According to Calastone, moving these messages it blockchain will save up to 3.4 billion pounds a year for the firm. Beyond this, it can help to set an industry standard which will likely be welcomed due to the opinion held by many investors that transaction fees should be lowered.

“The more you can automate, the more you de-risk, you more you streamline, the more you speed up,” said Andrew Tomlinson, chief marketing officer at Calastone.

On one hand, the use of Blockchain to create cryptocurrency, its most famous product, is very energy-intensive and runs a significant cost, which has led to firms moving to reduce their mining costs and small-scale miners stealing electricity to mine currency.

On the other hand, transaction costs for the sending of funds through blockchain fall lower every year even as the amounts being sent get higher.  

The use of blockchain to send information isn’t a new concept. However, a firm of the size of Calastone moving its entire network to blockchain is a bold move and one that can help speed up adoption of Blockchain in general.

Considering the fact that Calastone works with over 1,700 forms including industry heavyweights such as J.P Morgan, one can expect to see similar announcements coming soon.


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